Yet another solution to selection highlight problems with first, and last items in the list:
Add padding to the top and bottom of your list background equal to or greater than the radius. This ensures the selection highlighting doesn't overlap with your corner curves.
This is the easiest solution when you need non-transparent selection highlighting.
<?xml version="1.0" encoding="utf-8"?>
<shape xmlns:android="http://schemas.android.com/apk/res/android" >
<solid android:color="@color/listbg" />
<stroke
android:width="2dip"
android:color="#D5D5D5" />
<corners android:radius="10dip" />
<!-- Make sure bottom and top padding match corner radius -->
<padding
android:bottom="10dip"
android:left="2dip"
android:right="2dip"
android:top="10dip" />
</shape>